ETH/USD - Rising Wedge
Updated
After the ETH price initiated a corrective rally of 35% after falling to its lowest level since 2017, it looks like a rising wedge is being formed with a possible break either up or down. To be valid the following should occur in the next 12 -15 hours, together with the fact that Sunday is statistically one of the most volatile days for cryptocurrencies, there is a high probability that the pattern is valid. The trading idea is to wait for the 1 hour candle close below/above the wedge for additional confirmation.
Due to the fact that there was a 35% corrective rally and the long term trend is negative, there is a higher probability of the break on the downside.
Don't forget to like the post if you agree with my trade set up.
Due to the fact that there was a 35% corrective rally and the long term trend is negative, there is a higher probability of the break on the downside.
Don't forget to like the post if you agree with my trade set up.
Note
As expected, the 1 hour candle broke and closed bellow the wedge and a short position has been opened. The target for this trade has been calculated based on the minimum price objective from the base of the wedge. SL above the recent higher high. A retest move to the bottom line of the wedge is highly likely in the upcoming hours.The pattern and the overall trade set up will become invalid if the price action will demonstrate a close of 2 consecutive 1h candles inside the pattern.
Note
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For those who missed the entry point on the breakout, could wait for the retest move of the 218 - 220 range, and enter the trade with half of the initial risk.Trade closed: target reached
Despite the fact that it took a bit longer than initially expected, the price action ideally respected the rising wedge and after an impulsive break-out reached our projected target. Thanks to all who followed and liked this idea!
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